Kingdom Ranch raises cattle and produces beef and hides in a fixed proportion. The demand for hides is lower than the demand for beef. There is no way to separate the costs of producing hides and beef. Both products are sold in imperfectly competitive markets (demand schedules are downward sloping. The demand schedules for Kingdom Ranch are Qbeef = 800 – 2*Pbeef and Qhides = 300 – 1*Phidias. The total cost schedule for Kingdom Ranch is TC = 100+ 4*Q package + 2*Qpackage2. Find the optimal beef/hides prices and outputs? The profit-maximizing price for beef (without any rounding) is:?

 A.200.

B.225.

C.350.

D.375.

E.425.

Answer rating: 100% (QA)

Ans Given Total cost TC schedule is 1004Qpackage2Qpackage2 MC 44Qp Qp is Qpackage Qbeef 800... View the full answer